- The Coalition made a number of commitments during the election campaign which may impact you, and
- Several of Labor’s proposed reforms to the superannuation system are yet to be legislated of which the Coalition are yet to commit to implementing.
Some of the key commitments made by the Coalition prior and during the election campaign include:
- deferring the increase in the percentage of an individual’s income that an employer needs to contribute to superannuation. Labor had proposed to increase the percentage rate to 12% by 2019/20. The Coalition has proposed that this be deferred to 2021/22.
- removing the Low Income Superannuation Contribution. This is a Government funded contribution of up to $500 for those whose taxable income is below $37,000. Note however that the Government co-contribution will still be available.
- introducing a more generous Paid Parental Leave scheme
- repealing both the carbon and mining taxes
- reducing the company tax rate to 28.5% from 1 July 2015.
Some of the proposals by the former Federal Government which have yet to be legislated include:
- taxation of earnings on accumulated superannuation savings used to pay a regular income stream. This proposal is to apply to earnings above $100,000
- changes to the way an Account Based Pension is assessed by Centrelink in determining the amount of age pension an individual receives
- changes to the penalties that may be imposed on the trustee of a Self Managed Superannuation Fund (SMSF) for certain breaches of the rules.
It’s important to note that the above are all proposals at this stage and as such, no specific action is currently required by you. Also, given the likely composition of the Senate the above proposals may change prior to being legislated.
Naturally we will be keeping our eye on the progress of these proposals and if there is a change in legislation we will be in touch should your financial situation need to be reviewed. In the meantime, do not hesitate to contact OBT on 07 5462 2277 if you have any questions.